Investors interested in stocks from the Building Products - Miscellaneous sector have probably already heard of Continental Building Products and PGT . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Continental Building Products and PGT are both sporting a Zacks Rank of # 1 (Strong Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CBPX currently has a forward P/E ratio of 18.78, while PGTI has a forward P/E of 22.25. We also note that CBPX has a PEG ratio of 0.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PGTI currently has a PEG ratio of 1.16.
Another notable valuation metric for CBPX is its P/B ratio of 4.19. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PGTI has a P/B of 5.89.
These are just a few of the metrics contributing to CBPX's Value grade of B and PGTI's Value grade of C.
Both CBPX and PGTI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CBPX is the superior value option right now.
Image: Bigstock
CBPX vs. PGTI: Which Stock Is the Better Value Option?
Investors interested in stocks from the Building Products - Miscellaneous sector have probably already heard of Continental Building Products and PGT . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Continental Building Products and PGT are both sporting a Zacks Rank of # 1 (Strong Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CBPX currently has a forward P/E ratio of 18.78, while PGTI has a forward P/E of 22.25. We also note that CBPX has a PEG ratio of 0.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PGTI currently has a PEG ratio of 1.16.
Another notable valuation metric for CBPX is its P/B ratio of 4.19. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PGTI has a P/B of 5.89.
These are just a few of the metrics contributing to CBPX's Value grade of B and PGTI's Value grade of C.
Both CBPX and PGTI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CBPX is the superior value option right now.